A dealer marks his goods 25% above cost price. He then allows some discount on it and makes a profit of 9%.?
Question:conti..The rate of discount is ?
what's he dealing?
I think we should just pretend the goods cost 100$.
You know the dealer marked up his goods 25% above cost price, so we find x, where x is the dollars 25% above cost which can be written as 125% of the original cost.
x$ / 100$ = 125% / 100%
x = 125$
Now it says he makes a discount and make a profit of 9%.
We know the original cost was 100$ (we just assumed), so that means the profit would have to be 9% above the original cost otherwise noted as 109% of the original cost.
x$ / 100$ = 109% / 100%
x = 109$
So now we know the discounted price, which is 109$.
To find the discount rate, you would first find the difference between the mark up price and the discounted price, so 125-109 = 16$
Then, divide the difference (16$) by the mark up price (125$), thus the discount rate is 16$ / 125$ = .128
In percentage form .128 x 100% = 12.8%, B
LET THE COST PRICE=100
GOODS ARE MARKED AT 125
HE MAKES A PROFIT OF 9%,
SO SALE PRICE=109
RATE OF DISCOUNT=16/125*100=12.8%
More Related Questions & Answers...